Aeon Investments is investing an initial £200m (€236m) in commercial mortgages in the UK through a funding deal with SME finance platform Assetz Capital.
Over the next three years, London-based, credit-focused investment firm Aeon is set to inject an initial investment of £200m into SME loans arranged by Assetz, enabling the firm to provide commercial mortgages of up to £10 million on commercial investment properties.
Assetz said the partnership allows it to further diversify its commercial mortgage lending and “expand its ability to lend across the widest range” of commercial properties used by UK SMEs.
Stuart Law, CEO of Assetz Capital, said: “We are delighted to enter into a new relationship with a like-minded company equally committed to supporting the SME sector.
“The need for SME financing has never been more evident, as an increasing number of traditional lenders do not offer financing solutions to SMEs. Together, through innovative and alternative financing, we can enable UK businesses to grow and grow.
Oumar Diallo, CEO of Aeon Investments, said: “Our agreement with Assetz Capital is the latest example of our commitment to the commercial real estate sector.
“If you have a strong risk management focus and have conservative LTVs and conservative debt coverage, we believe commercial real estate lending is a very attractive asset class, especially in the current environment with a depressed fixed income market and declining equity prices.”
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